DATE OF ISSUANCE: Policy was approved by the President's Council on October
17, 1995.

ACCOUNTABLE DEPARTMENT/UNIT: Enrollment Services.
General questions about policy content should be directed to Enrollment Services,
x8-8186.

ABSTRACT: This policy details the specific process and steps used
to resolve any outstanding student account balance.

Note:The Student Receivable Collection Policy
and Procedures will be under review in the fall of 2011, with the expectation
that the policy will be vacated. In the interim, the current Student
Financial Obligation Statement is the appropriate reference point. That
statement is provided to all students through Student Information Online (SIO),
and may be accessed at http://www.cmu.edu/hub/billing/sfo/index.html. Questions about
this statement may be directed to Brian Hill, Director of Student Accounts.

Student Accounts
Receivable Collection Policy and Procedures

Policy Statement

A student is responsible for the payment of charges incurred at the
university by the stated payment deadline. The purpose of this policy statement
is to detail the specific process and action steps to be used to resolve any
outstanding student account balance.

Procedural Overview

Enrollment Services will take progressive action to resolve any student
account balance greater than $500. These actions include: communication, first
with the student and second with the parent/s, regarding the account status,
academic and administrative consequences of nonpayment, and the provision of information
and realistic payment options to resolve the delinquent balance; communication
with appropriate university service administrators and the associate dean of
the student's college concerning the same issues communicated to the student
and parent/s.

In situations where the university attempts to resolve the outstanding
balance but the student has not made or met satisfactory arrangements for
payment, the university will take one or both of the following two actions: (1)
financial suspension and/or (2) wage garnishment.

In the case of a financial suspension, the student will
be restricted from registering for and enrolling in university courses and
programs, and s/he will be prohibited from using university academic and
administrative services. These services include, but are not limited to,
computing facilities, library services, housing, dining, career center
services, degree verification and the release of (official) academic
transcripts.

If a student is employed by Carnegie Mellon, the
university may garnish the student's wages to recover the amount due to
the university. The cashier will notify the student prior to any action,
and the amount to be garnished will be tailored to individual
circumstances.

Procedures

Currently Enrolled
Student/New Balance Due

Enrollment Services will notify, in writing, any enrolled student who has an
account balance greater than $500 for 20 days beyond the stated payment due
date. The letter will state that s/he risks administrative action by the
university, including possible financial suspension, if the student does not
resolve the outstanding balance.

Graduating student with any balance due:
During the spring semester, Enrollment Services will notify, in writing, any
graduating student with an account balance. The letter will clearly address the
outstanding balance and consequences of nonpayment. It will be mailed with the
student's follow-up spring semester statement/s of student account. Any
graduating student who does not clear his/her account balance prior to commencement
will not receive a diploma. In addition, the student will be prohibited from
using university academic and administrative services. These services include,
but are not limited to, computing facilities, library
services, housing, dining, career center services, degree verification and the
release of (official) academic transcripts.

Currently Enrolled
Students/Carry-over Balance Due

A student who received account balance action letters from Enrollment
Services during the previous semester, and who has an account balance greater
than $500 following the current semester deadline for enrollment, will be
subject to the following procedures.

Enrollment Services will send notification of continued
nonpayment after the 15th day of classes (third week) to the student and
parent/s, the university service administrators and the associate dean of
the student's college. This action will be documented in the student's
administrative records.

Enrollment Services will work with the student and
parent/s to resolve the financial issue. Payment arrangements will follow
standard practices related to collections, to include a promissory note
with a specified repayment schedule within the current semester. Requests
for exceptions to standard collection practices, such as extending the
payment schedule beyond the current semester, must be made in writing to
the vice president for enrollment. All requests will be reviewed by the
Student Accounts Receivable Committee, composed of the vice president for
enrollment, vice president for business, the dean of student affairs and
the directors of Enrollment Services. Input from the associate dean of the
student's college will be requested and considered. When a payment
agreement is reached, Enrollment Services will mail a letter to the
student and parent/s detailing the conditions of the agreement and the
risk of financial suspension if the agreement is not fulfilled. This
correspondence will be copied to representatives of the Student Accounts
Receivable Committee and to the associate dean of the student's college.

If a financial agreement is not reached, the
student will be financially suspended. The student will be prohibited from
using university academic and administrative services. These services include,
but are not limited to, computing facilities, library services, housing,
dining, career center services, degree verification and the release of
(official) academic transcripts for the upcoming semester.

If the student is an employee of the university, the
university may garnish the student's wages to recover the amount due to
the university. Enrollment Services will notify the student prior to any
action, and the amount garnished will be tailored to individual
circumstances.

Prior to the registration period for the upcoming
semester, Enrollment Services will send correspondence to any student who
has a carry-over balance and who has not developed or maintained a
satisfactory repayment plan. This correspondence will advise the student
and parent/s that the student will be ineligible to register for the
upcoming semester until s/he pays the balance in full. This correspondence
will be copied to representatives of the Student Accounts Receivable
Committee, university service administrators and the associate dean of the
student's college. Additionally, the student will be prohibited from using
university academic and administrative services. These services include,
but are not limited to, computing facilities, library services, housing,
dining, career center services, degree verification and the release of
(official) academic transcripts for the upcoming semester.

If the student has an overdue balance at the completion
of the current term (a carry-over balance greater than or equal to $500
for 2 consecutive terms), Enrollment Services will send a letter to the
student and parent/s to advise them that the student has been
"financially suspended" and that s/he will not be permitted to
return to the university until the account balance is paid in full. This
correspondence will be copied to representatives of the Student Accounts
Receivable Committee, university service administrators and to the
associate dean of the student's college.

If at any point in the process the student's account balance is paid in
full, Enrollment Services will update the student's enrollment status and
release the hold on his/her academic and financial records. The student will
then be able to register for courses and use university academic and
administrative services. Enrollment Services will also notify the appropriate
university academic and administrative staff members.

Delinquent
Account/Financially Suspended

A student who has been financially suspended and who retains an account
balance will be subject to the following procedures.

Enrollment Services will send a series of financial
status letters to the student indicating the consequences of nonpayment or
continued account delinquency. Enrollment Services will mail the first
letter when the student is classified as having a delinquent balance, with
follow-up letters at distinct intervals from the point in time Enrollment
Services determines that the student's account is in a delinquent status.
Enrollment Services will also use telephone conferences with the student
and parent/s.

Enrollment Services will note any response to the
financial status letter or telephone communication with the student and
parent/s in the student's financial records, along with any arrangements
for payment. Enrollment Services will update the student's account balance
to reflect any payment and will assign an appropriate follow-up review
date to ensure that the student continues to take action to resolve the
financial delinquency.

If at any point in time Enrollment Services determines that internal
collection efforts have been unsuccessful, Enrollment Services will refer the
student's account to an outside collection agency. Enrollment Services will
notify the student and parent/s before any referral to a collection agency.

If the student's account balance is paid in full at any point in the
process, Enrollment Services will update the student's account status and
release the hold on his/her academic and financial records. The student will be
able to register for courses and use university academic and administrative
services. Enrollment Services will notify the appropriate university academic
and administrative staff members.